Converting staked Ethereum into sustainable USD yield doesn't require chasing every new incentive program. Here's a streamlined approach that works:

Start by supplying wstETH on Morpho's lending pool. From there, borrow vbUSDC while keeping your LTV conservative—aim for 50-60% range rather than maxing out. This buffer protects you from sudden market swings.

Next, put that borrowed vbUSDC to work by providing concentrated liquidity on Sushi for the vbUSDC/wETH pair. Tight band positioning means better fee capture on the specific price range you're targeting.

Stake your LP tokens to unlock programmatic rewards. The combination compounds—you're earning lending yields, swap fees, and incentive rewards from a single capital deployment.

The key is discipline: this setup generates real dollar flows without overextending on leverage or constantly rotating between flavor-of-the-month protocols.